Federal Regulations and Professional Practice

Maintaining a viable service-oriented private professional practice has become increasingly difficult in an era of growing government regulation. The paper focuses on factors contributing to increased regulation of business; internal impacts on the firm's operations; strategies for responding to regulatory requirements; and the new market opportunities created as a result of regulations. Rather than responding in an uncoordinated fashion to regulatory requirements, a firm should have a well-defined strategy for allocating its resources to satisfy its regulatory requirements in ways consistent with corporate goals. Definition and implementation of this strategy is one of the primary challenges confronting today's managers. Because of more effective organization and managerial preparation, some firms will experience fewer costs as a result of regulation than will others. The firm which experiences lower costs will have a competitive advantage. Thus, all problems are disguised opportunities. For the A/E profession, Federal regulations have not only created entire new market areas, but have also challenged us to become better managers as well.